Regearing Leases & Disposal
Great Portland Estates PLC
31 March 2004
Great Portland regears flagship Bond Street leases and sells in Northampton
31 March 2004
Great Portland Estates plc ('GPE'), the specialist central London investor/
developer, has regeared its leases at Bond Street House, 15/16 New Bond Street,
London W1, with existing tenant Mappin & Webb Limited ('M&W') taking a new
overriding lease over three floors to create a new flagship retail store with
associated offices at a rent of £1.085 million per annum.
Previously, only the ground and basement retail units were leased to M&W
subsidiary, Watches of Switzerland, on two leases expiring in June 2006. With
planning permission gained in December 2003, GPE had the option to redevelop the
basement, ground and first floor units at the expiry of the existing leases, but
by signing M&W up for a new 25 year term it has delivered almost all of the
valuation uplift that would have flowed from a redevelopment, three years early
and at a fraction of the cost. M&W will carry out a refurbishment of the store
including a complete upgrade of the shop front.
GPE owns a number of holdings in the immediate vicinity, including Clarendon
House, 17/18 New Bond Street opposite, the retail part of which is let to LVMH
until 2016. The effect of the regear at Bond Street House is to increase the
valuation of these two buildings by some £8 million, an uplift of approximately
13%.
In an unrelated transaction, GPE has also exchanged contracts to sell Sol
Central, its leisure development in Northampton, to O&H Properties for £23
million. The 188,000 sq ft development, completed in 2002, includes a multiplex
cinema, hotel and casino and produces a net income of £1.8 million per annum.
Toby Courtauld, Chief Executive of GPE said;
'We are delighted to have achieved the regear with Mappin & Webb Limited in this
important Bond Street pitch. The deal not only preserves the retailer's prime
position on the street for a further 25 years, but delivers us a risk-free,
immediate and significant valuation uplift.
The sale of Sol Central is in line with our stated strategy of focusing our
attention on our central London business, which now accounts for over 98% of our
portfolio.'
Contacts:
Toby Courtauld, Chief Executive
Great Portland Estates plc 020 7612 1442
Robert Noel, Property Director
Great Portland Estates plc 020 7612 1443
Edward Orlebar, Gordon Simpson
Finsbury 020 7251 3801
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